The head of American Express Co.'s recently launched Membership Banking service said his Internet-only bank competitors' business models are unsustainable.

Ruediger Adolf, senior vice president at the New York financial services company, said Membership Banking stands apart from small Internet-only upstarts in that it offers attractive rates on checking accounts and meshes on-line banking with other American Express offerings.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.